DOWN 40% ON A STOCK? TRY THIS SIMPLE TRICK! | TRADING OPTIONS



In today’s video I want to to show you a secret approach you can use to recover from a stock thats down over 30% fast using …

49 thoughts on “DOWN 40% ON A STOCK? TRY THIS SIMPLE TRICK! | TRADING OPTIONS”

  1. looks like a dumb strategy…what if you get assigned on your covered call and your OTM calls expire worthless? I have BABA shares that I bought at $220 and now trading at $118, what strategy can help me recover faster to my cost basis?

  2. I make huge profits on my investment since i started trading with mrs Diana may, her trading strategies are top notch coupled with the little commission she charges on her trade

  3. In this example your covered sell call will last a week longer then your buy calls and there is chance you will be called away for a loss..bad example

  4. Why would you buy weekly way OTM calls? Those are just lottery tickets making your P/L chart look good, and in 3 days they are just gonna be worthless. The profit chart looks enticing but you have to think how likely is the share price going to be inside the green areas. And in fact, if it ends up in the small green area on the left, you still lose money since you have 100 shares of the underlying stock. This strategy basically boils down to a covered call, and buy some weeklys. Do I need to remind you that the second part is just what WSB people do.

  5. Godspower Williams is running a LPP program using the mirror trading strategy as he day trade fully with some set of trading bots which has accurate market predictions and average traders copy those trades and make profits as he does without touching the market while they learn on the side

  6. wow, shockingly bad advice, you run the risk of losing your shares AND having your calls expired worthless if the stock moves 1 week late. Just because you can play with option strat's p&l doesn't mean you made money. Common sense is more important than Greeks in options.

  7. people, if the stock trades between 11.5 and 12.5, you will not sell your shares at a huge loss. you will just buy back the short call with your own money and it will be cheap because it will be very close to the original price of 11.3

  8. I always appreciate your videos. They are very articulate and precise. I especially appreciate that you take your time to explain things. So many finance gurus talk and quick edit so fast I can't keep up. I'm not that bright, but I love investing. You help me do that at a pace I can follow and grow in.

  9. Quick question/statement…..I think it is worth explaining that if you are selling a call option at 11.50(in this example) and buying 3 at 12.50…..if the price at the time of expiration of the long calls is below the strike of 12.50 but above the strike of the short call of 11.50. The long calls expire worthless (which is fine because you received the credit of $16 on the short call, but then unless you roll your short call out farther and repeat the process, you end up selling the stock at the 11.50 price getting $1150 plus the premium of $16 for a total of $1166. Still giving you a loss of $400+. I suppose you could then sell a put close to ITM to make some of that up then rinse and repeat. Just a thought unless I am missing something or looking at this wrong, let me know! Thank you and appreciate your channel

  10. Love your informative videos. I have found the fastest way to recover from a bad stock is find the cheapest crypto that's at bottom and throw a grip at it then wait for a day!!!!! Hahahhaha

  11. Total crap. First week happens nothing your 3 calls expire worthless, then you are lost with a itm call at 11.50 with price say at 12.50. You are dead

  12. How do you choose your expiry dates though? The theory behind everything explained makes sense; however, you've lowered your break-even only for this specific two-week period. So should the stock not move significantly, I assume you'd take that credit and snowball it into a similar position in following weeks, until price moves favorably ?

  13. What time of day do you do your discord? Is this just for day trading? I"m looking to buy and sell options while working a full time job. Are your discords recorded, so if I join, i can watch them when I get home or in the early morning? ty

  14. Do not follow anyone who promotes BUYING short term calls or puts. There is a VERY HIGH rate of failure with short term option BUYING. You MUST BE right on timing and stock movement. There is no margin for error. You usually run out of time and you loose the premium you paid. It is not free money when you sell a call to get the premium to buy the calls with.
    You should never buy a call or a put with less than a six month expiration. (The exception being, when you sell a short term credit spread.)
    Short term OPTION BUYERS are gamblers.
    Short term OPTION SELLERS are the Casino.
    Long term, the House always wins.
    Be the House, not the gambler.

  15. Very informative video, well the crypto market seems to have waken up in a bullish pattern and a better season to go into bitcoin day trading with a working strategy and signals backed with the help of a pro which turns out be so accurate and profitable. Tom Davies has been a real mentor so far which have been able to grow my portfolio from 1.1btc to a total of 6.8btc through daily trading.

  16. Hi, thanks for this video. I'm in the same boat, but how can l do this with TD Ameritrade? Thanks again!!

  17. Instead of showing data from options strat, across all the strategies, if you could show how the P/L would be based on the price movent, that would help

  18. Isn't this making you loose even more than doing a covered call? What happens after first 3 calls expire worthless? Then you have a week left with you covered call and if it get exercised you loose that 1600 something minus 16. While if you did covered calls you loose 1600 something minus 55. And I am pretty sure probability of profiting from those three calls expire same week is close to zero seeing how stagnant SKILZ now. Ofc I am not a option expert or whatever. So pls explain if I am wrong

    Edit- oh this is a week ago. So I am pretty sure those calls expired worthless. So what are you going to do with the remaining call? Close it since it must be cost less now?

  19. Is this guy serious , I hope people not following him , the shares will be assigned and u won’t have shares if the call u sold expires in the money

  20. Best growth play on planet earth is TESLA and digital currencies, that's why i got into it employing the help and Advise of Elizabeth Wilder Richardson Making a smart move keeps you one step. i did a market research studying the recent chart before making moves on market choice. I'm on a stable $165k weekly. in my opinion. The industries tesla is disrupting are going to make the company trillions!!

  21. Make sure you understand what this will do for you. The title is good for getting people to watch the video. You will lose more money if the price is not going up.

  22. This is a risky play and only way I would consider this is if I absolutely had to make that money back fast.

    The long options expire in less than a week and time decay will be fast. There is a real risk of those being closed for a loss (or expiring worthless).

    You also risk having your 100 shares called away at a loss. And this could happen at any time the short call goes ITM.

  23. I watch a lot of YouTube videos and see a lot of traders earning massively and then I start to wonder what I could possibly be doing wrong because I’ve been trading for a couple of months and every trading attempt seems to be red, never have I seen a green day. It is really frustrating seeing loses without any profit. So, I decided to work a bit more on myself and then opened a demo account, do my analysis, then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless, any advice for a struggling trader?

  24. Maybe I am missing something here, this doesn’t make sense to me, if your stock only goes to $12.00 your calls are worthless, and your stock gets called away at $12 less your credit, and your calls are worthless so you lose the $400 loss still

  25. Most of the previews strategies that I tried on your video not filled by robinhood. Don't know why or do anyone tried and get filled

  26. Those long call options that expire in less than a week will end up decaying even faster than the short call though. It makes more sense to go further out in time for both legs.

  27. sell half at the money, If it is going up sell half at the money again.

    keep doing it. patience is the key to recover.

  28. What happens if the 3 call options expire worthless while the sold call option still has a week to run? You could still lose your shares for only $16, no?

  29. When one buys 3 call options, the premim is paid by selling covered call is fine but one has to have 3times the call value funds in account. And finally if those shares assigned one has to take delivery of those 300 shares. I suppose I have understood correctly, if not please enlighten me. Thank you

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